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Timely implementation of DTC – Sentiment Positive
Actively considering new Urea policy - Positive for cos like GNFC, Uni Phos, Chambal Disinvestment target at Rs40000cr, to boost non tax revenue
Indian MF to get direct access to foreign investors - beneficial to Reliance Cap
Direct tax subsidy - good for rural based companies like ITC, Hero Honda
FII investments in Infra bonds raised by US$5bn. Positive for Infra companies
FII's allowed to invest in bonds of unlisted infra-SPV's - Positive for infra cos.
Minimum Tier I CAR to be maintained at 8%.
PSU Banks to be recapitalised by government to the tune of Rs20175cr.. Positive for small PSU Banks
To bring bill to enable RBI to grant more banking license - positive for Rel Cap, Shriram Transport Finance, LIC Housing
Interest subvention for Housing loan to continue
Rs100cr equity fund for Micro finance companies - Positive for SKS Microfinance
Direct investment in MF by foreigners with KYC, will help broaden investor base - Positive for Reliance Cap, HDFC, SBI
Upped PSL home loan limit to Rs25lakhs from Rs20lakhs - Positive for Banks and HFI like LIC HOusing, Dewan Housing, HDFC and GIC
New Companies Bill to be introduced in current session
Upped capital Infusion in PSU Banks to Rs20,157cr from earlier Rs16,500cr
Credit growth to agriculture sector increased to Rs475000cr, up 27% yoy - Positive for PSU Banks
Interest subvention for farmers repaying crop loans increased by additional 1% to 3%.
NABARD authorised capital base increased to Rs5000cr
To create 20lakh metric tonnes of storage capacity - Positive as this will help reduce wastage. Positive for containing food inflation
Infra allocation increased by 23% yoy to Rs214000cr.
Positive for Infra companies
Tax free bonds to the tune of Rs30,000cr allowed to be raised by Govt Infra Institutions. Positive for Infra
3% interest subsidy to farmers in FY12
Fertilizer industry to be included under Infra space
To give Infra status to cold storage companies.
IIFCL disbursement target increased to Rs25000cr in FY12. Positive for Infra and Banks
Amnesty scheme for Black Money will help increase non-tax revenue and lower fiscal deficit
Additional Rs10000cr towards various rural development programme.
Rs58000cr allocated for Social Scheme.
To link NREGA wages to inflation
Food security bill to be introduced in current year.
Education allocation expenses up 24% to Rs52000cr.
To provide rural broadband connectivity.
To create 4 million tonnes of food storage capacity by FY12
Health care spend to be increased by 20% in FY12
Rs21000cr allocation towards literacy programmes.
Non Tax revenue receipts for FY12 estimated at Rs125000cr.
Gross tax revenue estimated at Rs9.32tn
Fiscal deficit at 5.1% of GDP for FY11.
Fiscal deficit for FY12 estimated at 4.6%, 4% for FY13 and 3.5% for FY14
Increase basic personal income tax exemption limit to Rs180000 - sentimental positive
FY11 revenue deficit seen at 2.3%. - Sentimentally Positive
Surcharge for local companies reduced to 5% from existing 7.5% - Positive for domestic companies
MAT raised to 18.5% from 18% currently - marginally negative
SEZ to be charged MAT - Negative for IT companies
Net market borrowing at Rs3.43tn in FY12 - Positive for Banks
Central excise duty retained at 10% - Positive for Auto
Peak custom duty retained
Export duty on Iron ore increased to 20% - Negative for Sesa Goa
Allowed duty free import of parts - Positive for ship owners
Service Tax on hotel services increased - Negative for Hospitality sector
Service Tax on Air travel increased - Negative for Aviation
No excise duty on equipments for UMPP projects - Positive for Power generators and domestic equipment manufactures
To tax life insurance services providers - Negative for insurance companies
Revenue loss from direct tax receipts pegged at Rs11500cr, indirect tax revenue targeted at Rs11300cr
Tax sops of Rs20000 towards investment in Infra bonds retained - Positive for Infra financing companies.
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